It’s not just about finding perfect home, it is about doing everything in your power to be the accepted offer. There are a few basic rules to pay attention to so that you don’t end up making a mistake.
Real Estate Basic Rule Tips
Avoid Large Purchases While in the Buying Process
If you have planned your purchase, then you’ve cleaned up your credit to secure the lowest interest rate possible. Your credit score is now favorable, you owe nothing or next to nothing or you have a maintainable monthly debt. You’ve made an offer and the buyer has accepted that offer and you feel it’s now time to go purchase that new furniture for your new home. STOP! Even if you are paying cash, you don’t want any big changes to any of your accounts- you don’t want your credit debt to change, you don’t want any shuffling of money out of your bank account, or between bank accounts and so on. If you do purchase, you may run the risk of securing the loan. Mortgage lenders take a very dim view of adding to or changing your debt structure during the loan process.
Don’t Commit to a Mortgage Loan Based on the Interest Rate
When you shop for a mortgage loan you want to shop interest rate, but, you don’t want to necessarily select the lowest rate mortgage loan. There are other things to consider aside from the interest rate of the loan and that includes the cost to obtain the loan i.e. points and the monthly payments. If the loan has an escalating interest rate it can destroy your comfort zone down the road.
Always Have Representation When You Purchase a Home
Always have a professional realtor represent you. Real estate purchases are a legal process and the role of the realtor is to ensure that every legality is covered and that you thoroughly understand each step of the process. Your realtor will help you to find your home, negotiate a price, and close the deal.
Have a Property Inspection
A property inspection is essential. A property inspection will disclose any issues with the property which include sewage systems, HVAC systems, and anything that has to do with the structure of the home and buildings, its safety and livability. If there is a high risk fire threat then visit the local fire department to discuss any issues.